Posts Tagged ‘Scrap Gold’

Smuggled gold could account for over a third of demand this year in India – the world’s second-biggest buyer of gold – potentially costing the government over $1 billion in lost revenue. Gold refiners have less than a 1% margin. If smugglers offer 4 or 5% discounts, they have no choice but to close operations. All 32 refineries in the country have stopped buying dore until market conditions normalize.

Metals Focus Consultancy: Gold prices have probably peaked this year and could sink to their lowest since 2010 at $1,100 an ounce as the US economic recovery gathers pace. Western investors tend to set the price, while physical markets react to it. Also expect silver prices to average just under $20 an ounce this year.

How Long Can The Gold Prices Be Held Down? The answer in short is “For as long as demand in the traditional markets is either lower or the same as supply.” This has two aspects, first the potential for rising demand and second, the potential for falling supplies.